Rupert Murdoch said his 21st Century Fox (FOXA) wil no longer pursue a takeover of Time Warner (TWX). In a statement, Murdoch said Time Warner's refusal to engage with his company, as well as a drop in 21st Century Fox's stock price since the bid was made public, led the company to withdraw the takeover offer. As of yesterday’s close, the stock price for 21st Century Fox had fallen about 5% since the bid for Time Warner was announced. Separately, Time Warner reported second quarter earnings that beat estimates, but revenue missed expectations.
Sprint (S) has abandoned its pursuit to takeover T-Mobile (TMUS). Regulators reportedly resisted the deal because there would be fewer wireless companies to compete against Verizon (VZ) and AT&T (T) and would leave fewer choices for customers. Last week, France's Iliad made a $15 billion bid for a 56% stake in T-Mobile. Iliad is reportedly planning to raise that offer. Sprint also announced it would replace its CEO, bringing in board member Marcelo Claure to run the company.
Apple (AAPL) will reportedly take the wraps off of its next flagship smartphone next month. According to Recode, the company will unveil its iPhone 6 at media event on September 9th. Several reports say that Apple will introduce two new models, one with a 4.7-inch screen and another model with a 5.5-inch display.
Separately, Apple and Samsung have called a partial truce over their patent battles outside the U.S. The two smartphone rivals agreed to abandon patent lawsuits in eight countries, including Australia, Japan, South Korea and the U.K. However, the companies will still pursue existing cases in U.S. courts. Apple and Samsung have been at each other for three years over intellectual property rights for mobile designs and technology.
Walgreen (WAG) announced it will buy the remaining 55% stake of British drugstore chain Alliance Boots in a deal worth about $10.1 billion. However, it's unlikely Walgreen will move its headquarters from the U.S. to the U.K., as several other companies have done. Yahoo Finance Editor-in-Chief Aaron Task said it's not in the best interest economically for Walgreen to remain based in the U.S. Even though inversion is legal, Task said Walgreen and other companies have been hesitant about moving their headquarters because of pressure from U.S. politicians. He said that's not how American Capitalism should work.
"If politicians don’t like it, change the law," Task said. "That’s the problem."
What do you think? Is it appropriate for politicians to pressure companies to keep their headquarters in the U.S.? Should politicians stop with their rhetoric and put more efforts toward changing the law? Leave a comment below or on Twitter.
- Mergers, Acquisitions & Takeovers
- Investment & Company Information
- Time Warner
- 21st Century Fox
- Rupert Murdoch